Microsoft Xbox eyes 3 rounds of fresh layoffs, to launch Xbox handheld next year: Report
Microsoft is reportedly planning a major shift in its Xbox business, but prior to that the company is once again gearing up for a fresh round of layoffs that will come in three rounds. Aside from that, Xbox is also planning to unveil its next-generation console, which reportedly carries the codename Project Helix, by the 2028 holiday season. If that’s not already enough, then the company is also planning to launch a new Xbox handheld in late 2027. According to reports, Microsoft has internally projected that Project Helix could cost between $1,200 and $1,800. Here’s everything you need to know about Xbox’s future plans.
SurveyProject Helix and Xbox Handheld could launch by 2028

According to a report from Fortune, Microsoft is planning to launch a next-generation handheld device in the upcoming holiday season of 2027. Not only that, but the company is also planning to follow up with a new console which may land by the holidays in 2028.
However, it’s important to note that the report doesn’t clarify whether the handheld device would be made by a manufacturer like Asus or by Microsoft itself. Xbox has previously teamed up with Asus for its Xbox Ally devices, which ran a modified version of Windows 11 with an Xbox mode enabled.
While talking about the Project Helix, Xbox CEO Asha Sharma described it as a ‘family of devices’. This has led many to speculate that Microsoft’s next Xbox console may not be just one piece of hardware.
Microsoft has also reportedly moved up some of its engineering deadlines and is using AI to help solve technical and performance problems. Sharma has said the company will not use AI without a clear purpose. Aside from that, the company is also working closely with AMD through a multi-year partnership to develop chips for its upcoming gaming devices.
Xbox layoffs and Microsoft’s future plans
The report further added that Sharma is planning another round of layoffs that would take place in October, November, and January. The CEO has previously said that the company plans to reduce the headcount by 3,200 during the next year, and working in that direction, Xbox has already slashed 1,868 jobs, trimming many management layers.
Not only that, but the company has also made changes to its gaming studio structure. Double Fine and Compulsion Games have reportedly been allowed to become independent again, while concerns have emerged about the future of Ninja Theory.
Rumours around a possible Xbox sale or spin-off are also circulating in the market. However, Sharma has stated that Xbox is not for sale, putting a stop to the speculations for now.
New Xbox console could cost Rs 1.7 lakh
If the current price projections are to be trusted, then the upcoming Project Helix from Xbox could become one of Microsoft’s most expensive gaming consoles. Fortune reported that Microsoft has internally projected that the console could cost somewhere between $1,200 (approx. Rs 1,13,000) and $1,800 (approx. Rs 1,70,000).
While Microsoft has not officially commented on this, the rise in the cost is expected because of the current shortage of memory chips in the global market. Sony’s next PlayStation console is also rumoured to get more expensive.
Bhaskar is a Senior Copy Editor at Digit India who keeps a close watch on everything shaping the world of technology from smartphones and home appliances to AI, government tech initiatives, digital safety, and the latest industry developments. Whether it's breaking news, in-depth features, hands-on reviews, practical how-to guides, or exclusive scoops, he translates complex tech into stories that are easy to understand and worth reading. His work has been featured in iGeeksBlog, GuidingTech, and other leading publications. Before joining Digit India, he served as an assistant editor at TechBloat. A B.Tech graduate and full-time tech journalist, he is driven by just one goal, which is to help readers stay informed, stay secure, and stay ahead in an ever-changing digital world. View Full Profile
